European Central Bank (ECB) President Christine Lagarde emphasized the importance of Europe taking charge of its own future in light of the tariffs expected to be imposed by the United States. In an interview with France Inter radio, Lagarde described this moment as a critical point for Europe, which she sees as a stepping stone toward greater independence.
“With the upcoming tariffs, we must collectively determine the course of our own destiny,” Lagarde stated. President Trump has referred to this day as “Liberation Day,” during which he plans to unveil a comprehensive tariff proposal following the imposition of taxes on aluminium, steel, and automobiles, as well as heightened tariffs on goods from China.
Lagarde characterized Trump’s approach to international relations as transactional, noting that he applies business-like principles to diplomacy. She expressed concern about the economic impact of these tariffs, projecting a reduction of approximately 0.3 percentage points in European growth during the first year of their implementation.
Furthermore, Lagarde warned that if Europe responds with reciprocal tariffs, the economic decline could deepen, potentially reducing growth by 0.5 percentage points. This scenario underscores the need for Europe to strategize and act decisively in light of the evolving global trade dynamics.
As Europe navigates these challenges, Lagarde’s comments highlight a pivotal moment for the continent as it contemplates its independence and direction in the face of U.S. trade policies. The coming weeks will be crucial for Europe as it assesses its response to these tariffs.